Muslimin criticizes IBRA policy

Muslimin criticizes IBRA policy

JAKARTA (JP): Minister of Forestry and Plantations Muslimin
Nasution insisted on Monday the Indonesian Bank Restructuring
Agency (IBRA) could not seize forest concessions from debtors.

Muslimin said forest areas managed by concessionaires could
not be calculated as company assets and must be considered the
government's property granted to timber companies under logging
contracts.

The definition would preclude concession areas being
surrendered as a collateral asset to IBRA.

"IBRA should consult with us before taking concession areas as
collateral assets," Muslimin said.

IBRA's chairman Glenn M. Yusuf said over the weekend that the
ministry's recent move to revoke or to refuse renewal of several
forest concessions had inflicted losses on the agency.

He said some debt-burdened forest concession holders had
surrendered their concession areas to the agency as collateral
assets for the payment of their debts to the government.

Last week the government revoked eight forest concessions
totaling 1.17 million hectares owned jointly by former president
Soeharto's children and their business associates as part of the
anticorruption, collusion and nepotism campaign.

For the same reason the government also said it would not
renew 13 other forest concessions covering 1.36 million hectares
when they expire next March.

The revoked concessions included those owned by timber
tycoon Mohamad "Bob" Hasan, whose business group Kalimanis Group
is included in IBRA's list of the biggest debtors.

Several analysts fear that the government's move would lead to
a shortage of log supplies in the country.

But, Director General of Forest Utilization Waskito
Suryodibroto assured concerned parties adequate log supplies
existed in the country.

Waskito said the government would also punish timber companies
which failed to report to the government changes in the ownership
of their companies.

He said under the forestry law, timber companies should inform
the ministry of any changes in their ownership.(gis)